6/13/2023 0 Comments Lordstown endurance![]() The company’s founder, Steve Burns, who has since been ousted, was bullish about demand for the truck. There was considerable attention and hype around the company, particularly in 2020 when it revealed a prototype of its Endurance EV truck. The startup, an offshoot of another struggling EV company Workhorse Group, reached a deal in 2020 to merge with special purpose acquisition company DiamondPeak Holdings Corp., with a market value of $1.6 billion. Lordstown has had a tumultuous run since its founding in 2019. Foxconn warned it would terminate the investment agreement if the breach was not resolved within 30 days. The situation became dire after Foxconn sent a letter on April 21 to Lordstown stating the automaker was in breach of the investment agreement because its stock price fell below $1 for 30 days and was at risk of being delisted on the Nasdaq exchange. Manufacturing slowdowns, coupled with quality issues discovered in the truck, which also prompted a voluntary recall, made the company pause production and customer deliveries until mid-April 2023. The first three vehicles were delivered toward the end of the year. ![]() The company, along with manufacturing partner Foxconn, started commercial production of the Endurance in the third quarter of 2022. Shares of Lordstown Motors, which hit an all-time low of $0.25 earlier this week, were trading up at $0.39 by midday. Lordstown Motors had just $108 million in cash at the end of the first quarter, according to its earnings report. ![]() ![]() On Thursday, the company said in its first-quarter earnings report that “it anticipates production of the Endurance will cease in the near future” after repeated production delays, failing to find a strategic partner for the truck and extremely limited ability to raise capital in the current market environment. Lordstown issued a warning May 1 that it could be forced to file for bankruptcy because Foxconn may pull out of a critical funding deal. But now, with that relationship faltering, it appears the road is ending for Lordstown’s Endurance EV truck and maybe even the company. Beleaguered EV company Lordstown Motors seemed to have found a financial savior in Foxconn, the Taiwanese manufacturer best known for making iPhones for Apple. ![]()
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